29 Jun 2016
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
There is a tremendous amount of media coverage on Brexit but the only significant impacts to date have been on the pound sterling devaluing to 1980 levels and price falls across UK and European banks.
Assuming the exit proceeds which is not yet an absolute certainty, the UK will have 2 years to negotiate a withdrawal according to the attached timeline.
In terms of impacts on Australia, exports to the UK account for 1.5% of Goods and 8% of Services which is on the low side however the Australian banking sector has significant exposure to both the UK and the Eurozone.
The biggest danger is most likely on whether this euro-skepticism becomes contagious and results in other countries leaving the European Union.
Remember, if it all does fall apart it will present investors with the opportunity to buy more quality assets at reasonable or better still discounted price.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.